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Sep 11, 2017 04:41 PM IST | Source: CNBC-TV18

Rise in caustic soda prices could lead to some margin expansion: Gujarat Alkalies

Gujarat Alkalies and Chemicals is in focus on back of increase in caustic soda prices in the last few months. To gauge the impact of this on margins and capacity utilisation, CNBC-TV18 spoke to the company’s Managing Director PK Gera.

The company annually produces 4.3 lakh tonnes of caustic soda, and it contributes about 52-53 percent to its revenues.

The rise in caustic soda prices was due increase in international demand and China reducing production due to environmental issue. The average prices in the last quarter was around Rs 32 per kg.

However, he does not expect any miracle and expects to clock a single-digit growth with topline around Rs 2400-2500 crore. One could also see margin expansion due to rise in caustic soda price to the tune of 5 percent, said Gera.

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